Coinbase Unlocks DeFi Opportunities for XRP and Dogecoin Holders on Base

Crypto traders holding XRP and dogecoin (DOGE) can now access yield-generating decentralized finance (DeFi) opportunities on Base, the layer-2 blockchain developed by digital assets exchange Coinbase (COIN).

Coinbase announced on Wednesday that wrapped versions of these two tokens, named cbXRP and cbDOGE, are now available on Base. These wrapped tokens are backed 1:1 by the native coins, ensuring that for every cbXRP and cbDOGE in circulation, an equivalent amount of XRP or dogecoin is held in a secure custody solution by Coinbase.

Wrapped tokens provide a representation of original assets in environments where they are not natively supported, offering compatibility with Base's protocol and DeFi applications. This enables interoperability, facilitating the smooth transfer of coins within the ecosystem while allowing holders to participate in DeFi and earn additional returns on their spot market holdings.

Within the first 24 hours, the wrapped version of XRP reached a market capitalization exceeding $5 million, according to data from BaseScan. The market cap of wrapped DOGE is quickly approaching the $2 million milestone.

XRP, a cryptocurrency focused on payments and used by Ripple to streamline cross-border transactions, boasts a market capitalization of $128.8 billion, ranking it as the fourth-largest cryptocurrency. Dogecoin, a leading meme token with a market value of $28.2 billion, holds the top position in its category by market value, according to CoinDesk data.

Coinbase introduced a wrapped version of bitcoin (BTC), the largest cryptocurrency, on Base in September of the previous year. This wrapped BTC has since achieved a market capitalization of over $4.7 billion.